2002 Passat Turbo Failure

I have a 2002 Passat GLS 1.8T - 87K miles on it. It has been serviced by a dealer at every mileage. Not right at the mileage, but within 1500 miles. All parts are stock - no aftermarket mods.

I have replaced 2 ignition coils, set of valves and a turbo charger. Valves were result of the coil failure because the poor ignition caused valve rods to bend. Doesn't seem right, but replaced under warranty. Turbo failure was due to "oil sludge" but was replaced under warranty. First repair was at 15K miles and second was at 58K. Keep in mind that the dealer changed the oil every 5 - 6K miles.

A few days back, was on the highway doing 70 and car lost power. Check engine light came on. I slowed car and exited highway and car shut down. Tried to restart and it would not - was given total system failure message. Car was towed to dealer.

Today I was told that I had driven through a puddle and got water in the intake. Since car was out of warranty, the dealer told me to file an insurance claim for driving through a puddle. Comprehensive damage due to accident. Also known as fraud.

Problem is - it wasn't raining when I had the problem. I went to the dealer and looked at the car with the service manager and a tech. The intake is full of radiator coolant. According to the tech, the turbo has a cooling line from the oil cooler that failed, filling motor with coolant and bending all 4 connecting rods.

Car needs a new motor - $9,000 to repair.

Explanation makes no sense per my understanding of the turbo. The turbo is cooled by engine oil. Oil is cooled in the oil cooler which is pressurized and should be air cooled, not coolant cooled. If the cooler failed, the oil flows out and liquid does not flow in. Better to lose oil than fill motor with fluid.

Anyone got any idea how coolant got in the intake? I'm told turbo failures are fairly common on the 1.8T - what about that? Is there any other reason this could have happened?

I have to decide to repair or dump it and get a new one. I figure this information will at least help me negotiate with the dealer.

thats bs....

The turbo is cooled by coolant but there would not be enough coolant flowing to get into the intake charge, fill the intake pipe, the intercooler then go up into the in intake manifold, fil the manifold and then into the engine and at all... bend all 4 rods, come on. Sounds like the engine is sludged but they dont want to eat a 6000.00 turbo,engine job by warranty and they want 9000.00 of customer pay money. also, valves in the cyl head do not bend unless they hit the piston tops (aka timing belt breaks and all the intake valves hit the piston tops)

I think the shop is bs'ing you, unfortunately. (hint-go to the dealer and look at the coolant resivour and see if theres coolant in it. If supposedly the coolant did go in the turbo than there wouldnt be any coolant in the resivour. aka fraud of the dealer = big no no) Just dont tell them your going to look at it, also have them show you the line that broke, if a line did break than coolant would go everywhere BUT the turbo. Plus a used 1.8t engine from a junk yard is about 1800.00, a new one is about 5000.00, the fact they didnt give you a price on a used engine/turbo is kinda funny.